Shiba Inu Exchange Outflows Spike: Is Accumulation Enough to Offset Bearish Signals?

As Shiba Inu gradually recovers from recent bearish pressure, on-chain data now signals the potential emergence of a fresh downside risk.

Despite Shiba Inu’s recent price rebound, underlying metrics point to a fragile technical structure. These developments suggest that $SHIB may soon experience selling pressure.

Key Points

• On-chain data signals the potential emergence of fresh downside risk.
• A death cross has formed on the one-hour chart.
• Despite these bearish signals, $SHIB has climbed over 5% in the past day, supported by a strong rebound in trading volume and rising exchange outflows.
• A golden cross on the 4-hour chart, formed on March 19, remains intact, offering some technical optimism.

Weak Technicals

$SHIB’s technical outlook remains bearish. The asset remains below key resistance levels, particularly around $0.0000065. Adding to the concern, $SHIB recently formed a death cross on the 1-hour chart after failing to establish a golden cross on the same timeframe.

In this case, the 200-period simple moving average crossed above the 50-period SMA, reinforcing short-term bearish momentum.

Shiba Inu Soars 5%, Maintains Golden Cross on 4-Hour Timeframe

Despite these negative indicators, $SHIB has posted a notable short-term recovery. The token has surged by more than 5% over the past day and is currently trading above $0.0000060.

Currently trading at $0.000006116, $SHIB is up 5.81% in the last 24 hours and 0.43% over the past week, although it remains down 1.72% on the 30-day timeframe. In the meantime, the broader picture presents a mixed outlook.

Shiba Inu previously formed a golden cross on the 4-hour chart on March 19 and has maintained it since then. In addition, trading activity has rebounded sharply after an earlier dip, with volume surging 69.35% in the past 24 hours to $188.21 million.

Rising Exchange Outflows

Meanwhile, Shiba Inu exchange outflows have trended upward in recent days, according to data from CryptoQuant. The metric shows that outflows rose from 163 billion tokens on March 21 to 185 billion on March 22. Subsequently, the figure surged sharply to approximately 497.75 billion tokens yesterday, March 23.

Notably, rising outflows typically signal strong accumulation, as investors move $SHIB from exchanges into private wallets for long-term holding, thereby reducing immediate selling pressure.

Conversely, declining outflows, such as the dip observed between March 21 and 22, indicate weaker accumulation. In such cases, more tokens remain on exchanges, where they remain liquid and readily available for potential selling.

While short-term momentum appears to be improving, the underlying technical signal suggests that caution remains warranted as bearish pressure could re-emerge.